Business Accounting MCQs
Business Accounting MCQs
Answer these 100+ Business Accounting MCQs and assess your grip on the subject of Business Accounting.
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1: Under the _____, partnership assets are arranged in a certain order to pay any outstanding debts.
A. Non-negotiable/notices
B. Negotiable/defects
C. Marshaling/debts
D. Partnering/claims
2: When a business records accrued interest expense on a note payable ________.
A. Interest Expense is credited
B. Note Payable is credited
C. Cash is debited
D. Interest Payable is credited
3: Because ________ are less liquid for the depositor than ________, they earn higher interest rates.
A. Money market deposit accounts; time deposits
B. Checkable deposits; savings accounts
C. Savings accounts; checkable deposits
D. Savings accounts; time deposits
4: Bank capital is equal to ________ minus ________.
A. Total assets; total liabilities.
B. Total liabilities; total assets.
C. Total assets; total reserves.
D. Total liabilities; total borrowings
5: The contribution margin income statement presents ________ below the contribution margin line.
A. All fixed expenses
B. Only variable expenses relating to selling and administrative activities
C. Only fixed expenses relating to selling and admin fees
D. All variable expenses
6: When a division is operating at capacity, the transfer price should be ________.
A. A market-based transfer price
B. A cost-based transfer price
C. Based on opportunity cost
D. The total manufacturing cost
7: With _____, marketers group people by their values, attitudes, personality, and lifestyle.
A. Demographics
B. Psychographics
C. Geodemographics
D. None of these
8: Set up time is disregarded as an improvement priority under the ____ manufacturing concept.
A. Ust in Time
B. Traditional
C. Both of above
D. None of these
9: By increasing ________, a manager can increase operating income under absorption costing.
A. Leased assets
B. Fixed costs
C. Variable costs
10: Calculating gross pay for hourly workers is an example of ________ decision making.
A. Structured
B. Unstructured
C. Undocumented
D. Semi-structured
E. Procedural
11: Changes in activity have a(n) _________ effect on fixed costs per unit
A. Inverse
B. Neutral
C. Positive
D. Negative
12: When a company uses the allowance method to measure bad debts, ________.
A. The Allowance for Bad Debts account balance is added to the balance of the Accounts Receivable account to arrive at the net realizable value
B. The amount of bad debts expense is estimated at the end of the accounting period
C. The Allowance for Bad Debts account is debited when the bad debts expense is estimated
D. The Bad Debts Expense account is debited when an account is written off
13: When discussing weighing schemes for calculating the weighted average cost of capital, ________.
A. Market value weights are preferred over book value weights and target weights are preferred over historic weights.
B. Book value weights are preferred over market value weights and target weights are preferred over historic weights.
C. Book value weights are preferred over market value weights and historic weights are preferred over target weights.
D. Market value weights are preferred over book value weights and historic weights are preferred over target weights
14: When the sales price per unit decreases, the contribution margin per unit ________.
A. Increases proportionately
B. Increases
C. Remains the same
D. DECREASES
15: When the total fixed costs increases, the contribution margin per unit ________.
A. Increases
B. Decreases
C. Increases proportionately
D. Remains the same
16: The income statement of a service company will most likely include ________.
A. Salaries expense
B. Factory overhead
C. Direct materials
D. Cost of goods sold
17: When a company pays cash for a long-term investment in bonds, ________.
A. Equity remains unchanged
B. Current assets increase
C. Liabilities increase
D. Total assets increase
18: ________ includes general management, finance, accounting, legal, and government affairs.
A. Human resources
B. Research and development
C. Firm infrastructure
19: __________ is the total combined values of all of the company’s customers.
A. Customer satisfaction
B. Customer-perceived value
C. Share of customer
D. Customer relationship management
E. Customer equity
20: A shortened form of the ledger is called a ________.
A. Trial balance
B. Balance sheet
C. Chart of accounts
D. T-account
21: An entity that buys goods and sells them to customers at a markup is a ________.
A. Merchandiser
B. Service provider
C. Manufacturer
D. Producer
22: An unfavorable flexible budget variance in operating income might be due to a(n) ________.
A. Decrease in sales volume
B. Increase in sales price per unit
C. Increase in variable cost per unit
D. Decrease in fixed costs
23: At the maturity of a note payable, a borrower will pay ________.
A. The principal plus interest
B. The principal minus interest
C. The interest amount only
D. The principal amount only
24: Discounted cash flow methods, such as net present value and internal rate of return, ________.
A. Focus on the payback period
B. Use net income amounts rather than cash flows
C. Consider discounted cash flows
D. Use simple interest calculations
25: Dividends normally carry a _______ balance and are shown in the ______________.
A. Debit; Statement of stockholders’ equity.
B. Debit; Income statement.
C. Credit; Balance sheet.
D. Debit; Balance Sheet
26: In multiple regression, plot the residuals against ____ to detect changing variability
A. All explanatory variables
B. Collinear variables
C. The predicted values
D. The response variable
27: Inventory reduction is a ____ principle.
A. Lean
B. Traditional processing
C. Economic
D. Just-in-time
E. Wait time
28: Payment cards with disposable numbers are known as _____.
A. Credit cards
B. Store-branded cards
C. Single-use cards
D. Charge cards
29: The commitment concept says that plans should ________.
A. Extend far enough to meet those commitments made when the plans were developed
B. Be done for as long a time period as possible
C. Be done for as short a time period as possible
D. Not commit to specifically meeting the goals made when the plans were developed
30: The current portion of long-term notes payable is ________.
A. The amount of principal that will be paid within five years
B. Included with the long-term liabilities on the balance sheet
C. Recorded an adjusting entry
D. Reclassified as current for reporting purposes on the balance sheet
31: The direct materials budget is prepared using information from the ________ budget.
A. Cash
B. Master
C. Capital expenditure
D. Production
32: The ima?s ethical standards include all of the following except ________.
A. Honesty,
B. Credibility,
C. Confidence,
D. Competence
33: The predetermined overhead allocation rate is calculated by dividing ________.
A. The actual overhead costs by actual amount of the cost driver or allocation base
B. The total estimated overhead costs by total number of days in a year
C. The estimated amount of cost driver by actual total overhead costs
D. The estimated overhead costs by total estimated quantity of the overhead allocation base
34: When preparing the cost of goods sold budget, ________.
A. Ignore balances in Finished Goods Inventory
B. Start by calculating the projected cost to produce each unit
C. Ignore the inventory costing method
D. Multiply units produced by the total projected cost per unit
35: _____ are people who are prompted to apply for a job by someone within the organization.
A. Direct applicants
B. Internal employees
C. Boomerang employees
D. Referrals
E. Virtual employees
36: The amount of net income is transferred from ________ to ________.
A. The balance sheet; the income statement
B. The income statement; the statement of owner's equity
C. The balance sheet; the statement of cash flows
D. The income statement; the statement of expenditures
37: ____ manufacturing philosophy emphasizes quality and zero defects.
A. Lean
B. Traditional
C. Chinese
D. Zero-Based
38: All fixed costs are listed ________ on a contribution margin income statement.
A. Above the gross profit line
B. Below the gross profit line
C. Above the contribution margin line
D. Below the contribution margin line
39: Given a price of p2, this firm in a purely competitive industry should ___________
A. Produce Q1
B. Produce Q3 with a minimum loss
C. Produce Q5 with an economic profit
D. Shut down to minimize the loss at the fixed cost level
40: The ________ capital budgeting method uses accrual accounting income.
A. ARR
B. Payback
C. NPV
D. IRR
41: Under variable costing, a unit of a product includes ________.
A. Direct material, direct labor, and manufacturing overhead
B. Direct material, direct labor, and variable overhead cost
C. Direct material, direct labor, and fixed manufacturing overhead
D. Direct material, direct labor, and all variable manufacturing overhead
42: Reduction in production cost results in ________.
A. Decreased profitability
B. Lower shareholder value
C. Increased profitability
D. Increased competition
43: The entry to record the purchase of direct materials on account would include a ________.
A. Debit to the Raw Materials Inventory account.
B. Debit to the Work-in-Process Inventory account.
C. Credit to the Work-in-Process Inventory account.
D. Credit to the Raw Materials Inventory account
44: The interest rate that investors demand to earn for loaning their money is known as the ________.
A. Yield to maturity
B. Coupon rate
C. Differential rate
D. Market interest rate
45: Total revenue divided by ________ = units sold.
A. Cost
B. Profit
C. Selling price
D. Total operating costs
46: Underallocated overhead occurs when ________.
A. Actual overhead costs are less than allocated overhead costs
B. Estimated overhead costs are greater than budgeted overhead costs
C. Estimated overhead costs are greater than actual overhead costs
D. Allocated overhead costs are less than actual overhead costs
47: A cost center responsibility report ________.
A. Typically focuses on the flexible budget variance
B. Includes depreciation expense
C. Is the same as a performance report
D. Shows all costs incurred by the department
48: In a negative message regarding a transaction, the salutation should be _____.
A. Addressed To Whom It May Concern
B. Dear Sir or Madam
C. Personalized to the recipient
D. Dear Customer
49: When 1,000 shares of $3 stated value common stock is issued at $18 per share, ________.
A. Common Stock - $3 Stated is credited for $18,000
B. The difference between the issue price and the stated value is credited to Paid-In Capital in Excess of Stated
C. The accounting is exactly the same as the accounting for par value stock
D. The account titled Paid-In Capital in Excess of Stated is used to record the issue price of the stock
50: All of the following are assets except ________.
A. Inventory
B. Patents
C. Cash
D. Bank loans
51: The revenue recognition principle guides accountants in ________
A. Ensuring expenses are deducted from revenues
B. Ensuring only revenues received in cash are recorded
C. Determining when to record expenses
D. Determining when to record revenues
52: __________ relate to the effort spent in making sales.
A. Primary data
B. Observational data
C. Marketing outcome data
D. Marketing input data
53: When deciding whether to discontinue a segment of a business, relevant costs include ________.
A. Fixed supervision costs that can be eliminated
B. Variable marketing costs per unit of product sold
C. Cost of goods sold
D. Future administrative costs that will continue
54: Activity drivers can be classified as either ____ or ____.
A. Unit-level; nonunit-level
B. Inputs; outputs
C. Right; wrong
D. Exact; inexact
55: At the internal rate of return, the present value of net cash inflows will equal the ________.
A. Average operating income
B. Initial cost of the investment
C. Profit from the project
D. Residual value
56: A short-term creditor is primarily interested in the __________ of the borrower.
A. Liquidity
B. Profitability
C. Consistency
D. Solvency
57: The cost of goods sold is subtracted from sales to arrive at _____.
A. Gross profit.
B. Net sales.
C. Fees earned.
D. Operating income
58: ________ are a company's decision makers.
A. Managers
B. Employees
C. Owners
59: Long-term investments are made by the investment center manager for the purpose of ________.
A. Increasing profits
B. Decreasing profits
C. Increasing interest expense
D. Decreasing plant assets
60: Volatility refers to the degree of ________ within an environment.
A. Support
B. Instability.
C. Flexibility.
D. Resources.
E. Pressures
61: ________ is pay stated as a percentage of a sale amount.
A. Salary
B. Wage
C. Commission
D. Bonus
62: A ____ invests money in the business but has no management responsibility.
A. General partner
B. Limited partner
C. Sole proprietor
D. Nominal partner
E. Stockbroker
63: A _____ cost occurs when the amount used varies based on the volume of service provided.
A. Direct
B. Indirect
C. Fixed
D. Variable
E. Operating costs
64: _____ define(s) the specific types of people the advertiser wants to reach.
A. Audience objectives
B. Media objectives
C. Distribution objectives
D. Continuity objectives
65: _____ are numbers or letters assigned in a specific order.
A. Sequence
B. Category
C. Significant digit
D. Derivation
66: When a company receives cash from customers before earning the revenue, _________ will be credited.
A. Accounts Receivable
B. Sales Tax Payable
C. Accounts Payable
D. Unearned Revenue
67: ____ manufacturing deals with several suppliers in hopes of finding the best price.
A. Traditional
B. Just - in - time
C. Economic
D. Productivity
68: A correlation coefficient of _____ provides the greatest possible risk reduction to the firm.
A. -1
B. +1
C. +0.5
69: If a company retires preferred stock, ________.
A. Totalstockholders' equity will increase
B. The number of outstanding shares will increase
C. The company can record a gain or loss on retirement of stock
D. Total stockholders' equity will decrease
70: The ________ capital budgeting model considers both profitability and the time value of money.
A. Payback
B. Accounting rate of return
C. Net present value
D. Both a and c are correct
71: Disaster recovery typically looks at the __________.
A. Long run
B. Continuation of the business
C. Overall business plan
D. Short term
72: In the accompanying figure, the book rep table displays in ____.
A. Layout view
B. Structure view
C. Design view
D. Table view
73: Proponents of the emh typically advocate __________.
A. Buying individual stocks on margin and trading frequently.
B. Investing in hedge funds.
C. A passive investment strategy.
D. Buying individual stocks on margin and trading frequently and investing in hedge funds
74: The amount spent by a publishing company to pay for manufacturing its books is called ________.
A. Cost of goods sold
B. Operating expenses
C. Cost of goods purchased
D. Net loss
75: Income __________ when there is zero beginning inventory and all inventory units produced are sold.
A. Will be lower under variable costing than absorption costing
B. Will be higher than gross margin under variable costing
C. Will be the same under both variable and absorption costing
D. Will be lower than administrative costs under absorption costing
76: The standard quantity per unit defines the ________.
A. Amount of direct materials that should be used for each unit of finished product including an
B. Allowance for normal inefficiencies,
C. Such as scrap and spoilage.
D. All of these
77: The two methods that use present values to analyse capital investment proposal consider the _____.
A. Conservatism concept
B. Time value of money concept
C. Historical cost concept
D. Going concern concept
78: Roll-forward work normally occurs between the ____ and the ____.
A. Beginning of the year under audit; audit report release date
B. Date of the financial statements; audit report release date
C. Beginning of the year under audit; date of the financial statements
D. Date of interim work; date of the auditors' report
79: Salaries payable, interest payable, and unearned revenue are examples of ________.
A. Short term investments
B. Fixed Assets
C. Current Liabilities
D. Long term Liabilities
80: Salespeople often are paid a _______ based on a percentage of their sales.
A. Commission
B. Salary
C. Royalty
D. Piece rate.
81: Sustainability reporting is ______________ for american companies:
A. Mandated quarterly
B. Largely a voluntary effort
C. Required in the u.s.
D. A fair trade product
82: The _____ contains all the executive orders created by the president.
A. Restatements of the Law
B. Federal Rules of Civil Procedure
C. Uniform Commercial Code
D. Code of Federal Regulations
83: The ________ budget is the only budget stated only in units, not dollars.
A. Production
B. Sales
C. Direct materials
D. Manufacturing overhead
84: The manufacturing sector ________.
A. Only variable costs are subtracted to determine gross margin
B. Fixed overhead costs are subtracted to determine gross margin
C. Fixed overhead costs are subtracted to determine contribution margin
D. All operating costs are subtracted to determine contribution margin
85: The standard & poor's 500 is __________ weighted index.
A. An equally
B. A price-
C. A value-
D. A share-
86: When bonds are retired at maturity ________.
A. The entry to retire the bonds may gain or loss on retirement of bonds
B. The carrying value always equals the face value
C. The carrying value equals the face value plus the unamortized premium or less the unamortized discount
D. The bondholders are paid the face value plus the unamortized premium or less the unamortized discount
87: When demand is elastic, a price increase will __________ total revenues.
A. Decrease
B. Increase
C. Decrease, then increase
D. Have no effect on
88: ________ = cash on hand + cash receipts - cash disbursement.
A. Profit
B. Revenue
C. Cash flow
D. Gross profit
89: The exclusion of implied warranties in general states that _____.
A. For an implied warranty or merchantability, the disclaimer need not be in writing
B. A product that is safe when delivered is subsequently mishandled or changed
C. The duty to perform the contract is simultaneous.
D. The claimant must prove that there was a sale.
90: In a zero-sum game, the overall return actually becomes ____ if transaction costs are included.
A. Zero
B. Negative
C. Positive
D. Risk-free
91: One of the best techniques for determining current network capacities is creating a ____.
A. Baseline
B. Return of investment (ROI)
C. Payback analysis
D. None of these
92: Soc 2 and soc 3 reports both address primarily ________-related controls.
A. Communication
B. Financial reporting
C. Security
D. Management
93: The number of newspapers sold on may 30 would be kept in a ________ field.
A. Sorting
B. Record.
C. Customer ID.
D. Numeric
94: The role of the board of directors in an organization is to _____.
A. Audit committee
B. It considered the impact of corporations' on the larger community
C. Corporate governance committee
D. None of these
95: One of the key enhancements in ____ is energy efficiency.
A. Bluetooth smart
B. Wireless Access Point
C. Router
D. Ethernet
96: The primary difference between soc 2 and soc 3 reports is ________.
A. Standards
B. Their audience
C. Configurations
D. An audit
97: An advertisement that emphasizes crash test ratings appeals to the audience's desire for _____.
A. Self-esteem
B. Love
C. Safety
D. Belonging
E. Self-actualization
98: A recent gallup study reported that firms with top engagement scores had _____ higher productivity.
A. 6 percent
B. 8 percent
C. 16 percent
D. 18 percent
99: A reference value involves comparing the costs and benefits of __________.
A. Substitute items
B. Items of equal or greater value
C. Products with which a consumer is familiar and items the consumer has not seen or used before
D. Items from one particular distributor
E. Intangible items
100: A tax adjustment must be made in determining the cost of ________.
A. Common stock
B. Long-term debt
C. Retained earnings
D. Preferred stock
List of Business Accounting MC...
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Business Accounting MCQs
Вопросы по бухгалтерскому учету на русском языке
Preguntas de contabilidad empresarial en idiomas españoles
日本語でのビジネス会計の質問
Questioni di contabilità aziendale in lingua italiana
Questions de comptabilité d'entreprise en langues françaises
Questões de Contabilidade Empresarial em Língua Portuguesa
Fragen zur Unternehmensbuchhaltung in deutscher Sprache
中文（简体）语言的商业会计问题
أسئلة محاسبة الأعمال باللغات العربية
Soal Akuntansi Bisnis dalam bahasa Indonesia
Türk dillerinde İşletme Muhasebesi soruları
